
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Unearned revenues that will be earned in a relatively short period of time are listed on the
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- 2) Accounts receivable erroneously debited to note receivable Effect on retained earnings -Since these are asset accounts there exists no effect on net income of the entity. Can you explain this? Should it be retained earnings instead of net income?arrow_forwardTechnically, offsetting in financial statements is accomplished when a. Gains or losses from disposal of non-current assets are reported by deducting from the proceeds the carrying amount of the assets and the related selling expenses. b. The accumulated depreciation is deducted from property, plant and equipment. c. The allowance for bad debts is deducted from accounts receivable. d. The total liabilities are deducted from total assets to arrive at net assetsarrow_forwardIf the adjustment for unearned revenues is not recorded O a. net income will be correctly stated. O b. net income will be understated. O c. liabilities will be understated. O d. assets will be overstated.arrow_forward
- Why is depreciation on the income statement different from the depreciation on the balance sheet?arrow_forwardIncreases in asset accounts are recorded on the debit side the right side the dark side the credit sidearrow_forwardThe cost of new non-current assets is a cash payment not an expense in the statement of profit or loss? True Falsearrow_forward
- Which of the following is true regarding unearned revenue? Assets are increased when unearned revenue is earned. O Liabilities are increased when unearned revenue is received. O Net income is increased when unearned revenue is received. Revenue is increased when unearned revenue is received. Liabilities are increased when unearned revenue is earned.arrow_forwardAccrued revenues are ordinarily listed on the balance sheet as current liabilities. True Falsearrow_forward
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